Economic Theory Predicted That the Price of a Depletable Resource

question 135

Multiple Choice

Economic theory predicted that the price of a depletable resource would rise by 10 percent.In reality, the price fell by 5 percent.Which of the following events could explain this discrepancy?

• A)Known reserves of the resource were depleted.
• B)The interest rate rose by 15 percent.
• C)Antitrust enforcement broke up a cartel among major suppliers of the resource.
• D)The government imposed an effective price floor.

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